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Trump Tariffs End $800 Parcel Exemption

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U.S. Drops Longstanding Shipping Exemption

Trump tariffs have officially ended the $800 parcel exemption, a rule that once allowed duty-free imports on small packages. Starting Friday, U.S. Customs and Border Protection began collecting duties on all global shipments, regardless of value. This move disrupts e-commerce supply chains and raises costs for businesses worldwide.

Transition Period with Flat Fees

While the exemption is gone, officials announced a six-month transition. Postal carriers can temporarily pay flat duties ranging from $80 to $200 per package, depending on the country of origin. After February 2026, all shipments must shift to full value-based duty collection.

White House Defends the Policy

White House trade adviser Peter Navarro framed the change as a national security win. He argued the exemption had been abused to ship fentanyl and other narcotics, while also costing the U.S. billions in tariff revenues. According to Navarro, closing the “deadly loophole” could generate up to $10 billion each year.

A Blow to E-Commerce Growth

The de minimis exemption has existed since 1938 and was raised to $800 in 2015 to help small businesses grow online. But the surge of direct-to-consumer shipments from companies like Shein and Temu, especially after Trump’s earlier tariffs on Chinese goods, changed the landscape. CBP reports show shipments under this exemption skyrocketed from 139 million in 2015 to 1.36 billion in 2024.

Who Gets Hit the Hardest

Now, global shipping companies such as FedEx, UPS, and DHL must collect duties on every package. Postal agencies abroad face two options: process duties based on actual value or collect flat fees aligned with Trump’s “reciprocal” tariff tiers.

  • $80 flat for countries under 16% duty rates, like the U.K. and EU.

  • $160 for countries between 16%–25%, such as Vietnam and Indonesia.

  • $200 for nations above 25%, including China, Brazil, India, and Canada.

International Impact

Some foreign postal services briefly suspended deliveries to the U.S. However, officials confirmed shipments from the U.K., Canada, and Ukraine remain unaffected. The administration says it is working with foreign partners and the U.S. Postal Service to keep disruptions minimal.

This policy shift marks one of the most dramatic changes to U.S. trade rules in decades. Businesses relying on low-cost imports now face higher expenses, while consumers may see prices rise across e-commerce platforms. Trump’s administration insists the changes are permanent, signaling a tougher trade era ahead.

Stay tuned to Maple Wire for more updates on trade, tariffs, and global shipping news.

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